Cato Corporation Stock Buy Hold or Sell Recommendation
| CATO Stock | USD 4.96 1.12 18.42% |
Given the investment horizon of 90 days and your conservative attitude towards risk, our recommendation regarding Cato Corporation is 'Sell'. The recommendation algorithm takes into account all of Cato's available fundamental, technical, and predictive indicators you will find on this site.
Check out Cato Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Cato and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Cato Corporation. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
Cato |
Execute Cato Buy or Sell Advice
The Cato recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cato Corporation. Macroaxis does not own or have any residual interests in Cato Corporation or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cato's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Insignificant | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Cato Trading Alerts and Improvement Suggestions
| Cato had very high historical volatility over the last 90 days | |
| The company reported the previous year's revenue of 708.06 M. Net Loss for the year was (22.59 M) with profit before overhead, payroll, taxes, and interest of 314.77 M. | |
| Cato has a strong financial position based on the latest SEC filings | |
| On 30th of September 2024 Cato paid $ 0.17 per share dividend to its current shareholders | |
| Latest headline from news.google.com: On The My Stocks Page - Stock Traders Daily |
Cato Returns Distribution Density
The distribution of Cato's historical returns is an attempt to chart the uncertainty of Cato's future price movements. The chart of the probability distribution of Cato daily returns describes the distribution of returns around its average expected value. We use Cato Corporation price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cato returns is essential to provide solid investment advice for Cato.
| Mean Return | 0.43 | Value At Risk | -4.1 | Potential Upside | 5.64 | Standard Deviation | 3.20 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cato historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Cato Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Cato, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Cato Corporation back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Segall Bryant & Hamill | 2024-09-30 | 215.6 K | Geode Capital Management, Llc | 2024-06-30 | 174.5 K | Two Sigma Investments Llc | 2024-06-30 | 133.4 K | Rbf Llc | 2024-06-30 | 132.3 K | Connor Clark & Lunn Inv Mgmt Ltd | 2024-06-20 | 127.7 K | Gsa Capital Partners Llp | 2024-09-30 | 124.7 K | Two Sigma Advisers, Llc | 2024-06-30 | 122.2 K | Bridgeway Capital Management, Llc | 2024-06-30 | 119.7 K | Jane Street Group Llc | 2024-06-30 | 114.7 K | Aldebaran Capital Llc | 2024-09-30 | 1.1 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 926.2 K |
Cato Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 4.2M | 31.2M | (40.8M) | 12.9M | 13.5M | 14.1M | |
| Change In Cash | (10.8M) | 6.6M | 2.7M | 115K | 4.1M | 4.3M | |
| Free Cash Flow | 45.1M | (44.7M) | 55.7M | (6.1M) | (12.1M) | (11.5M) | |
| Depreciation | 15.5M | 14.7M | 12.4M | 11.1M | 9.9M | 16.0M | |
| Other Non Cash Items | 1.1M | 11.5M | 1.6M | 1.9M | 399K | 379.1K | |
| Dividends Paid | 32.6M | 7.9M | 10.0M | 14.4M | 14.0M | 18.9M | |
| Capital Expenditures | 8.3M | 14.0M | 4.1M | 19.4M | 12.5M | 20.1M | |
| Net Income | 35.9M | (47.5M) | 36.8M | 29K | (22.6M) | (21.5M) | |
| End Period Cash Flow | 14.4M | 21.0M | 23.7M | 23.8M | 27.9M | 35.0M | |
| Change To Netincome | 9.3M | 8.6M | 18.6M | 2.5M | 2.9M | 2.8M | |
| Investments | (13.0M) | 75.3M | (20.8M) | 16.0M | 19.8M | 20.8M |
Cato Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cato or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cato's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cato stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.39 | |
β | Beta against Dow Jones | 0.37 | |
σ | Overall volatility | 4.02 | |
Ir | Information ratio | 0.10 |
Cato Volatility Alert
Cato Corporation currently demonstrates below-average downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.39. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cato's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cato's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Cato Fundamentals Vs Peers
Comparing Cato's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Cato's direct or indirect competition across all of the common fundamentals between Cato and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cato or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cato's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cato by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Cato to competition |
| Fundamentals | Cato | Peer Average |
| Return On Equity | -0.0876 | -0.31 |
| Return On Asset | -0.0271 | -0.14 |
| Profit Margin | (0.03) % | (1.27) % |
| Operating Margin | (0.01) % | (5.51) % |
| Current Valuation | 145.88 M | 16.62 B |
| Shares Outstanding | 18.8 M | 571.82 M |
| Shares Owned By Insiders | 9.81 % | 10.09 % |
| Shares Owned By Institutions | 43.10 % | 39.21 % |
| Number Of Shares Shorted | 516.1 K | 4.71 M |
| Price To Earning | 24.87 X | 28.72 X |
| Price To Book | 0.65 X | 9.51 X |
| Price To Sales | 0.19 X | 11.42 X |
| Revenue | 708.06 M | 9.43 B |
| Gross Profit | 314.77 M | 27.38 B |
| EBITDA | (3.9 M) | 3.9 B |
| Net Income | (22.59 M) | 570.98 M |
| Cash And Equivalents | 153.59 M | 2.7 B |
| Cash Per Share | 7.67 X | 5.01 X |
| Total Debt | 153.12 M | 5.32 B |
| Debt To Equity | 0.64 % | 48.70 % |
| Current Ratio | 1.53 X | 2.16 X |
| Book Value Per Share | 10.10 X | 1.93 K |
| Cash Flow From Operations | 477 K | 971.22 M |
| Short Ratio | 5.27 X | 4.00 X |
| Earnings Per Share | (0.89) X | 3.12 X |
| Price To Earnings To Growth | 1.54 X | 4.89 X |
| Target Price | 23.0 | |
| Number Of Employees | 7.3 K | 18.84 K |
| Beta | 1.11 | -0.15 |
| Market Capitalization | 127.11 M | 19.03 B |
| Total Asset | 526.71 M | 29.47 B |
| Retained Earnings | 64.28 M | 9.33 B |
| Working Capital | 55.05 M | 1.48 B |
Note: Acquisition by Collins Karen Anne of 08 shares of Cato subject to Rule 16b-3 [view details]
Cato Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cato . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Cato Buy or Sell Advice
When is the right time to buy or sell Cato Corporation? Buying financial instruments such as Cato Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Cato in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Banking Thematic Idea Now
Banking
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banking theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banking Theme or any other thematic opportunities.
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Check out Cato Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cato. If investors know Cato will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cato listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.90) | Dividend Share 0.68 | Earnings Share (0.89) | Revenue Per Share 35.031 | Quarterly Revenue Growth (0.08) |
The market value of Cato is measured differently than its book value, which is the value of Cato that is recorded on the company's balance sheet. Investors also form their own opinion of Cato's value that differs from its market value or its book value, called intrinsic value, which is Cato's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cato's market value can be influenced by many factors that don't directly affect Cato's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cato's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cato is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cato's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.